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tv   Mad Money  CNBC  September 18, 2012 6:00pm-7:00pm EDT

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>> i'm sticking with bank of america. >> long packer. >> thank you for stick wg us. see you tomorrow. ""mad money" starts right now. >> i'm jim kramer. "mad money" you can't afford to miss it. welcome to "mad money," my job is not just to entertain but i'm trying to teach out here. call me. nobody trusts it. except the sec. not even the fed. that is my feeling about this despised market. the market that continue to have tens of billions of dollars of
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outflows of sell sell sell towards of bonds. even on not so hot days like today. nasdaq key lideclined and it lo like an ugly day at the beginning. boo! today my colleague countered that you can't stop progress. not all innovation is for the betterment of mankind. we except these principle inm t many walks of life. we got a gigantic hate going on against nuclear power. i remember the days when it was the peace of harnessing the atom. but it is being call eed into question after the three-mile
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island and fukashima. when on the first day of the balance. of world war i they sent their days in and machine guns made mince meat out of them and by the way, that is why we have the geneva convention. to me, the german machine guns are mowing down thousands and the people being annihilated? that is you. trying to save some money as generations have before you. as someone who cares about you and about the level playing field. my biggest option is that stocks around just a legitimate form of investment anymore. that is right, not legit. it is a place to put your money
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and try to bro wegrow wealth. it is a positive and constructive place to put your savings. they have been a place to put your savings gold has been an unbelievable performer and bonds. but even that asset is regaining it's muster. sure the collapse of dot coms has a lot to do with how people feel against stocks. that said, there is a difference between this stuff and the high frequency scalpers -- individuals blaming themselves for buying into the lack of diversification they get that. the bank collapse represented the risk people accept when the fundamentals of companies just get crushed.
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but the high-speed training element, the element that caused the facebook ipo to implode and cause the stock market to crash and caused a soft weaware declin apple and soft ware malfunction? they didn't sign on for that nonsense. until today i figured the government views these software malfunction the same as the wardrobe malfunction at the super bowl a few years ago. he forced rules that leveled the playing field that a lot of professionals didn't like and didn't take pushbacks from the pros. but a successful practitioners
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as is so often the case for this sec. i miss him. we should all miss him. it turns out that the government does get, however, it is a different part of the government. chicago fed put out a letter entitled how to keep the market safe in spite of trading. the letter exposes high speed trading firms have sacrificed the whole system we live by for the sake of speed. they can't set the machine guns fast enough. the investor is driven from what it never thought was a battlefield. they are maying it so that the high-speed trade iing -- stuff t
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i know the pros will hate. bear rates will caused by short sellers waiting for higher prices. i would like to have read about the need to the new lower volume world. i have to be satisfied to see one branch of the government recognizing that the traders are a problem. you know me, i have little faith that the government will do right by you. but great faith that they will allow you to save and operating cash flow that you and i trust. but faith in the sec? only if that is the one that is on cbs on saturdays. they have operation fair is fair the government isn't oblivious,
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they recognize that while progress can be good. some gets you slaughtered and the branch of government that is wise to the problems the chicago fed, it isn't the one that matters. let's go to dave in arkansas. thank you for doing what you do for us. i have a two-part question, which has the most upside sears logic or apple and why? what is the likelihood of apple splitting? >> sears logig it is amazing. but i stayed on the apple bus. do i think apple will split absolutely not. let's go to juan in california. >> hi, my question is regarding time warner cable selling off
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their $7.2 share of stock of clear water. >> okay their divorce themselves sprint made themselves clear that clearwire doesn't matter. clearwire is the play for many of you and i got to tell you. i wish you would stop speculating in it. not all innovation is for the betterment of mankind. this time with financial engineering running among. it is driving you away from what used to be a lit legitimate asset class. >> coming up topping out? new 52-week high s daily. markets soaring to the highest levels in years. but can this bull run last? kramer is taking on the technicals to find out on a
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critical edition of off the charts. >> and later playi ining dress . kramer is finding companies to cash in my breaking up. tonight he is trying on a name that could be the next one of success. should you be slipping your portfolio into something for comfortable? and kramer has his eye on a new drug makers that could provide the best medicine for your portfolio. all coming up on "mad money." don't miss a second of "mad money." foll follow @jimkramer on twitter. or give us a call at
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so where do we go from here?
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isn't that the big question? what is this market's next move? maybe we will be treading water for a little while. perhaps we are due for a bit of a pullback. so the buyers can catch their breath. after a because are we fooling ourself that this isn't over? we are going off the charts tonight with the help of carolyn boroden. they runs the website and i'm always telling you never to take your cue from the chart as los . and if you rely on them exclusively, i believe you will get burned. that said, broden has been so
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right about the market. she nailed this last one on the s&p 500 like no one else ever saw. i think you would have to be crazy. she is back and bigger than ever. remember, it bottomed back on june 4th. back on june 12th, she told me she was drawing a line in the sand. take a look at the s&p's daily chart. she said her numbers, a series of ratios that are found over and over again in nature. if you believe that the chart indicated that the bottom was the real guildeal. the s&p could be about to experience a major rally. she told me i want to make this call. she put the gun to her head and that was her confidence level. that was her moment when
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everybody was terrified that the world was about to blow up. the doom and bloom was that was all you heard from. she didn't listen to the chatter. in fact, she came up with a price target that seemed absurd. she rallied 10% higher than where it was at the time. i thought it might be embarrassing. i couldn't have the queen back on. the queen would be toppled. look at this fast forward to today. sure enough, last week the s&p peaked not at 1464, not at 1468, but at 1474. this was a babe ruth style chal. even if you think this is mathematical hokus pokus.
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it pays to listen to the hot hand. at the moment, she is still bullish and now more cautious than she has been. first of all, the s&p 500 has now hit her target. it is based on the size of a previous swing and she has moved after a major extension out of exsaupgs. when you check out the monthly chart, the reason? if you look at the huge move from the bottom in 2002, this is incredible. if you look at the peak at the end of 2007 in this move. the s&p ran up 807 points. over a 60-week period. since march of 2009 the s&p has rallied how much?
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807 points. i kid you not. 807, 807. it is enough to make you feel like you should be like worshipping the queen and not taking pictures with her top off, so, that is kate. believed that these moves will be about the same size. what happens to be where we peaked last week. so broden, isn't seeing signs yet of a big pull back but if it is on her radar screen it is on mine. what would broden do here? it is a buy. i think she is allowed to say that. no, look at this. this is a clear version of the sdally chart.
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above the low september 4th, that is the number. that is the new line in the sand. right? anyway, if we drop below that level she thinks all bets are off. she believes any pull back, has gone viral. and then 1518 pretty easily those targets are basically the same that allow this rally to jun june. the higher target right now, we
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need more juice. broden has longer term targets right now. she thinks it could rally to 1553. and more a longer term view, broden could make the case that the s&p could make its way up to 1820. wow, 25%. and it could take quite a long time to get there. remember that one, this is the support. she is going to throw the targets out the window. you know what? she gets the credit. she nailed it. what good is it if it comes back
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down. within ten points and where no one else believed, she thinks we might be do for a pull back. it is a viable one as long as it doesn't break down below key levels. this woman has the hot hand and all of this is definitely worth knowing. let's use the analysis. wait for the pull back and then, do some bubuys. >> coming up. playing dress up? forget tom-kat. kramer is taking a trip to splitsville. tonight, he is trying on a name that could be the next split up success. and later, healthy headlines? the biggest biotech names are
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showing off the newest in medical innovations this week. and kramer has his eye on newest drug makers just ahead. on "mad money." >> tomorrow it is a running of the bulls. how med action is a game changer for the gold. ♪ [ man ] when i'm in my zone...
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the stocks get no respect. you want to find stocks where the easy money hasn't already been made. if you want to own something, you need to learn how to look at these losers. most losers they stay losers. every now and then you find one waiting to be unlocked where the sum of the company's parts is worth more than the corporate whole s it is not because i'm some kind of jerk who gets a kick out of romance although that is an add deed bonus.
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and i got another break up play to suggest tonight. i'm talking about warnico, wrc. the company that has not been able to keep up with the rest of the industry. the company which declared bankruptcy a little more than a decade ago makes sportswear and intimate apparel. but you are familiar with the brands that they license from calvin klein and they have a license for speedo swimsuits. no, i have enough shame not to wear a speedo out here. although my staff has told me that they thought i had the body to pull it off. the brand sells for off the
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charts. everyone that is except warnico. the retail space is red hot right now. but it has not been able to keep up with it's peers and just not on a business side. it is up 39%. vf corp is up 29%. what a lagger. yeah. the company hasn't been able to execute. breaking up is not hard to do. you just, um, you know, no, let's not do that. you cancel the part to buyers that might be able to do a better job of management. it hasn't said anything off of spin offs.
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the company did get new leadership and after she took over she laid out new targets. i don't know if the company can hit those lofty goals and i like that she has a big, gold vision. she recognizes that they can generate a lot more than they are currently getting out of it. instead of trying to transform a dysfunctional company, why not try to take the quick and easy win? what i'm talking about here, let's start with calviklein business and their underwear. according to pvh and this is the only segment of the calvin klein
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business underperforming. why do i take this abuse? i have my own darn show? why do i allow them to make pictures of me? isn't it enough that i wear this? take that down. leave it up. anyway. underperforming 9 to 10% for the overall brand. warnico is not managing this brand well. she thinks the calvin klein side of the business could do 3% of the revenues. but there is a natural buyer out there for the business and the buyer is? ♪ >> pvh! i know that because they have said many times that they have
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sa said, so. they weren't hitting the targets and pvh got the license back for free. pvh said they think they can do a $500 billion opportunity. they think they can turn the bi bids in business into a huge profit by 2014. it has enough money on hand and a credit line to make this deal work. the fabulous ceo would love to do it. now that the easy money has been made. warnico says this division will do $3 billion in sales. so let's put a $3 billion price tag on this business and you are left with the rest of warnico. actually, this is a shirt that i got at j crew for $25.
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the speedo brand and the warner's intimate apparel, wow, geez, that is intimate. i could certainly see chaps and speedo being worth -- come on, this could be worth a lot to vp corp. vf bought timberland for $2 million. assuming they would be willing to pay that ad it all up and you get dramatically more. here is the bottom line. warnico has terrific assets. fabulous ones. some of the stuff is price lgle.
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these brands, are worth more to other companies than they are to other companies themselves. they get more out of them. i'm begging you. the best way to create value for your shareholders is to break yourself up and it is the way to show the naysayers that it is something that can be done tomorrow not three years from now. i would like to take a call from barbara in rhode island. >> hi jim. how are you? >> you sound like a money guy. >> i certainly look the part. >> hey, i listen to your expert advice on dean foods and i made some money. i bought 1,000 shares. i didn't wait long enough until it got down to $12 something. but i heard there was a spin off to white wave.
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>> yes, you got to hold on. particularly in a market that loves loves loves organic foods. that could be worth a great deal of money. >> i need to go to matt in florida. >> what is your deal on -- >> listen sunshine. i think that is a play on a better balance sheet. but you know, i just look it is a very challenged enterprise in a market where you have to be on your game in retail. i don't see them on their game. that is not enough for me. okay. it is not you it's me. better off as french. breaking up is hard to do unless you are talking about stocks like warnico. memo to you you are worth much more than the sum of your parts. stay with kramer.
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>> coming up. healthy head lines? the biggest biotech names are showing off the newest in medical innovations this week. and kramer has a look at drug makers. what is at the top of his list just ahead? when you take a closer look... the best schools in the world... see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... they can inspire our students.
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it is time for the lightening round. are you ready? kramer is ready. let's start with marvin in new york. >> sweet. lulu lemon. >> i like it. i think the great nickky drexler from j crew thinks that it is a well-run company. >> examisaexaminsam in connecti
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>> my question is on -- >> you need it to be at $120. dennis in yutah? >> thank you, thank you, thank you. without your advice for apple and i got in listening to you at $100 a share. >> yes, we have been behind that one for certain. the one today, ross. >> it is part of a complex like dollar tree. everyone selling the value guys. i think you should pick up 100 shares tomorrow morn. >> let's go to burt in california. >> burt? >> yes, are you still bullish on haines? >> why not? i think they did a good job. stock is coming down. it is giving up a bit. valerie in pennsylvania. valerie. how are you? >> okay.
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i'm a new older investor encouraged by your knowledge. i'm calling about well s fargo. >> going over the last four years and it's stock has not done nearly as well as it should have. it has got 30% of america's mortgage i want you to go right here. let's go to shawn in new york. >> booyah jim. >> booyah shawn. >> phm. >> it is good not the best. but these stocks are ramped. i'm going to say don't buy until after friday. and then you get a better chance. alice in florida. >> hi jimbo how are you? >> good how about you? >> great thank you. i'm calling today to find out
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about the cobalt international. i watched your show and ran out and bought. but it has bought since my pricing. >> it is still up a lot. the problem is again oil, oil has to go up big for these stock to work. these are options on crude. crude is not doing what we want it to if we want to buy the stocks. and then the stock comes back. >> how about virginia in texas? >> hi thanks for taking my call. fidelity income trust. >> i think the stock is cheap and i think it is one of my favorites. let's go to jim in connecticut, jim? >> hi, jim. booyah, booyah. >> booyah, booyah back. >> what do you see for utx?
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>> i say that is wrong. i think under $80 you have a real buyment and buy the rest at $75 and that is the new version of the lightening round. >> the lightening round is sponsored by td ameritrade. and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? [ male announcer ] introducing a reason to look twice. the entirely new lexus es and the first-ever es hybrid. this is the pursuit of perfection.
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we're right smack in the middle of conference season this week. one of my favorite times of the year. what should you be paying attention to? tonight i'm drilling down on the ubs global life sciences conference which starts tomorrow. so that you know which ones are worth buying and which ones are too hot to handle. well let's just put it this way. the best specks. ♪ hallelujah >> which i save for last because i'm a tease. this has call caused a mark so
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i'm playing by the tv rules. anyway. how can you watch these presentations? if you happen to be a client of ubs, the conference takes plays at the hyatt in manhattan. the old sec got them to do this. you got them to go to their website to do this. let's talk about the big name players. they know that i know i'm in front of the barca lounger. first, they present tomorrow morning at 8:00 am. it has the major medical aesthetics. we want to know what they think of the main competitors. it is on the market as a
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migraine drug and we will be list listening on the allergan pipeline. especially we want stocks since allergan sales have been stable despite the weakness in global commerce. i think he laid out the story that would take the stock to $100 maybe it is headed there. second we get another one that we have been liking. gill ead. and we know that ubs believes the numbers here are too low. i think they are telling a compelling story about hepc. it might not be done yet. when you get these with the
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right stuff. you get the parabolic move. cell gene has a great pipeline. the news is good and i think it will be. i think they can make a run at new highs. because the ceo, in bob we trust. you have to be careful not to get swept up. that is true when we are talking about biotech names that can be too risky. presenting at 1:30 p.m. on wednesday. the stock up 100% today. that means no matter how good this one sounds, we never chase on "mad money."
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the same goes for the former up 95% for you. who says you can't make money in the stock market. these stocks are too hot to handle. they are going to get singed if not burned. does that mean we can't have anything that we don't want to hear? we are going to hear from someone that i like very much. my favorite name is npsp. okay this company's presentation is at 9:00 am tomorrow. i'm glad itmidday. it is an $8 and change stock. it is only up 25% for the year. it is developing two drugs. remember orphan drugs treat a small number of diseases and the
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government gives these companies things. the main story is that the drug for syndrome that prevents tshot bowl syndrome. and we have heard that european regulators have worked closely with the fda on this. plus, nbs is the second shot on goal. companies could be approved and launched as soon as the second half of 2014. it treats a disease where the body doesn't produce enough p a
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parathyroid hormone. so this has two orphan drugged in the pipe. there is no rush to buy the stock. so every one will be watching and they will know it. the earliest catalyst is a month away. that is when the fda panel goes away. you have a month to wait for the pull back that happens and then you buy nps. if that sounds too risky for you. cbsd comes tomorrow. three drugs on the market and a robust pipeline. it includes three clinical trials. we want to hear how the five-year plan is progressing. you heard right. it has a five year plan. to generate two billion sales.
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you know why it is doable? it has been living on the 52 week high. stock trades isn't new crazy. so it is not that expensive on a price to earnings growth rate. let's listen to what it has to say about what cubist has to say. here is the bottom line. now you have the road map to tomorrow's conference. i want you to listen to the presentations and don't get swept up by the little guys. if you are looking for something to buy. watch the presentations tomorrow. i bet they tell very good stories. when i sold ice cream at veteran's stadium. you can't tell the players
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without a program. "mad money" is back after the break. >> megacomputers running monster machines taking mass production to new heights. cnbc fridays's 9:00 eastern. [ male announcer ] at scottrade,
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yesterday, oil plummeted $5
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before the bell. i was dazed at this. there was a big commodity. we know that stocks are thin. despite the high frequency trading. something that they tell you can't be true. manipulation can't be stopped. i thought that market had real depth. if you look at the decline in oil the one that took crude down $100 darn quickly. you saw a small number of long-term oil contracts get cancelled. that is when these oil projects require a long-term view from the companies national or private is that they can't maintain their growth they need more. production growth is a must for cash strapped companies because they had to cancel contracts.
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they keep ordering and they don't look at the fluctuations. the stocks seem to trade on every whim of the futures. as we saw from the close of trading yesterday. the ones that are most buffeted by the futures tend to be the ones that least likely see cancellations. the moves are down in these stocks are down and they are devastating and if you wait a few days they are plain wrong. i'm not telling you to take the other side of the train yet. it has left the stocks at an unsustainable high. i'm reminding you that in the worse sell off that i have seen down to 50 give or take a few dollars at the bottom, we had
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few cancellations. i can't see there being cancellations this time around. some of that is new discovery and they have to be drilled. some of that is in the gulf and some of that is in brazil. while largo and most important comes from the need to find oil in the united states where technology needs to exploit the new fields. tells you that a futures plunge takes forever. the price to climb for oil is not going to happen people. there is not a flut glut of oil. remember to buy the best of the breed. the names that are in the aih. i know my travel trust. it will be doing the exact same thing.
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stick with kramer. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. when you take a closer look... the best schools in the world... see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... they can inspire our students. let's solve this.
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my name is adam frucci and i'm the editor of i love new technology, so when i heard that american express and twitter were teaming up, i was pretty interested. turns out you just sync your american express card securely to your twitter account, tweet specific hashtags, and you'll get offers on things you love. this totally changes the way i think about membership. saving money on the things you want. to me, that's the membership effect. nice boots! oh, hey alex.
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just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. seconds away, breaking news news we'll have the latest. plus mitt romney defends his attack an the state benefits and continues to argue for a state society and mid east turmoil continues to spin out-of-control. the kudlow report is moment as


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